CHICAGO, July 12 /PRNewswire/ -- Liberty Bancorp, Inc. (NASDAQ: LBCI), the holding company for Liberty Federal Savings Bank, today announced earnings for the second quarter ending June 30, 1993. Net income was $1.7 million for the three months ending June 30, 1993. It was the same ($1.7 million) for the comparable quarter in 1992. For the six month period ending June 30, 1993, net income before cumulative effect of changes in accounting principles was $3.3 million as compared to $3.1 million, an increase of $200,000 or 6.15 percent. The cumulative effect of changes in accounting principles in 1992 increased net income by $481,000.
Fully diluted earnings per share equaled $.54 for the second quarter of 1993 as compared to $.51 for the same period in 1992. For the six months ending June 30, 1993, earnings per share were $1.05 as compared to $1.06 after cumulative effect of changes in accounting principles for the same period in 1992.
At June 30, 1993, total assets amounted to $526.3 million, an increase of $22.3 million or 4.43 percent as compared to $504.0 million at Dec. 31, 1992.
Branch Acquisition:
On June 26, 1993, the Savings Bank finalized the purchase of the savings deposits and branch operations of another Thrift located at 6061 Dempster Street, Morton Grove, Ill. The transaction totaled $11.6 million in deposits with a total premium paid of 2.0 percent or $233,000. In addition, the Savings Bank is remodeling 4,000 square feet across the street at 6014 Dempster to provide the account holders with expanded services, hours and parking. The acquired branch is expected to be relocated in November 1993.
Changes in Accounting Principles:
The Holding Company adopted changes in accounting principles for income taxes and post-retirement benefits in the fourth quarter of 1992 retroactive to Jan. 1, 1992. The cumulative effect for periods prior to Jan. 1, 1992, was to reduce income tax expense by $936,000 and create an accrual for post-retirement benefits of $455,000. The amounts applicable to 1992 and 1993 are incorporated in operations. The quarterly and six-month consolidated statements of earnings for 1992 were restated to account for the opening and current year's adjustments. There were no comparable adjustments in 1993. Fully diluted earnings per share for the second quarter and the six months ending June 30, 1992, before the cumulative effect in changes in accounting principles, were $.51 and $.93 respectively.
Comparison of Operating Results for the Quarter Ended June 30, 1993 and 1992:
For the quarter ended June 30, 1993, total interest income amounted to $9.6 million, a decrease of $626,000 or 6.10 percent as compared to $10.3 million for the same period in 1992. The decrease in interest income is the direct result of lower rates on originations and refinancing of existing loans. The quarterly average yield on earning assets for the quarter ending June 30, 1993, dropped to 7.53 percent from 8.43 percent for the same period in 1992. Total interest expense decreased $956,000 or 17.74 percent to $4.6 million for the quarter ending June 30, 1993, as compared to $5.6 million for the same period in 1992. The average cost of funds decreased 1.18 percent to 4.08 percent as compared to 5.26 percent for 1992. Comparable figures for the six months ending June 30, 1993 and 1992 were 4.12 percent and 5.47 percent respectively.
During the quarter ending June 30, 1993, $222,000 was provided for loan losses as compared to $218,000 in 1992, an increase of $4,000 or 1.51 percent.
Non-interest income for the second quarter of 1993 decreased $150,000 or 49.78 percent to $151,000 as compared to $301,000 for the same period in 1992. Loss on a limited real estate partnership amounted to $14,000 for the three months ending June 30, 1993, as compared to $120,000 profit for the same period in 1992, a decrease of $134,000 or $112.67 percent. In addition, there was a decrease in insurance commissions of $21,000 or 16.87 percent to $102,000 from $123,000 for the three months ending June 30, 1993 and 1992 respectively.
Non-interest expense amounted to $2.3 million for the three months ending June 30, 1993, an increase of $23,000 or 1.03 percent. Primary increases in non-interest expense are related to salary and employee benefits of $98,000, partially offset by a reduction in Federal Deposit Insurance Premiums of $60,000.
Federal and state income taxes amounted to $1.0 million, an increase of $185,000 or 22.21 percent as compared to 1992 of $832,000.
Comments on Statement of Condition:
During the six month period ending June 30, 1993, loans receivable net increased $26.5 million or 6.06 percent to $430.5 million from $404.0 million at Dec. 31, 1992. Prepaid expenses and other assets increased $978,000 or 15.79 percent to $7.2 million from $6.2 million for the same period. The increase in prepaid expenses and other assets are represented by such items as insurance premiums, deferred compensation and pension premiums and prepaid expenses paid during the first quarter and amortized throughout the year. These increases are partially offset by a reduction in cash due from banks of $1.8 million and principal repayments on mortgage-backed securities of $3.9 million.
-0- 7/12/93
/FIRST ADD TO FOLLOW/
/CONTACT: James K. Mair, manager - shareholder services of Liberty Bancorp, Inc., 312-334-1200/
(LBCI)

CO: Liberty Bancorp, Inc. ST: Illinois IN: FIN SU: ERN

MP -- NY069 -- 0515 07/12/93 14:59 EDT

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